No matter. According to Sir John Major, Miliband’s head is very much in the right place, even if he is wrong about how to use it. Sir John therefore suggests a windfall profits tax, the proceeds of which would be recycled into lower bills or subsidising low-income households.
This is an equally hare-brained idea that leads you seriously to question our former prime minister’s self-cultivated image as Britain’s favourite elder statesman, filled with wise counsel and sound advice. Precisely what is it that Sir John proposes to tax? In the first nine months of this year, Scottish Power, one of the big six energy providers, actually made a loss on its generation and supply business. How do you impose a windfall profits tax on a company that is making no profits?
There’s a certain amount of logic there, yes.